That Doesn’t Work Anymore

Chapter 27 Tearing Down and Running Around the Barriers to Entry

Barriers to entry form a wall that is built around an existing company protecting it from competitors. A start-up does not care how they breach the wall, they just want to get to the other side and take some of the revenue and customers that are inside. They want to find the weakness in the barrier and exploit it. There have been many lists of critical barriers to entry. Michael Porter, a Harvard professor, has done a significant amount of work on business strategy and his work on five forces of competition highlights barriers to entry. Below is a list of some of the key barriers to entry inspired by Mr. Porter’s work and work by others:

–Economies of scale: this typically gives ...